If I had $20,000 sitting in a supposedly high interest savings account I would look to put these funds to work in the share market.
After all, interest rates are at record lows and the market has averaged an annual return of 7.1% over the last 10 years according to Canstar.
If it were to achieve the same level of return over the next 10 years, that $20,000 investment would grow to be worth almost $40,000.
With that in mind, here is where I would consider investing that $20,000:
A2 Milk Company Ltd (ASX: A2M)
While this fast-growing infant formula company is by no means cheap, its shares have recently fallen approximately 14% from their high to a far more attractive level. Due to the insatiable demand for infant formula in China and a2 Milk's strong brand image in the country, I believe it is more than capable of delivering above-average earnings growth in the long-term to justify the premium its shares trade at today.
Appen Ltd (ASX: APX)
This exciting machine learning and artificial intelligence dataset provider counts some of the biggest tech companies in the world as customers. Such is the demand from the social media and search categories, Appen achieved an impressive 62% year-on-year lift in EBITDA in FY 2017. Despite this strong level of growth, management remains confident that FY 2018 will be even better due to the growing demand for its services. It has provided full-year EBITDA growth guidance in the range of 77.9% and 96%.
Macquarie Telecom Group Ltd. (ASX: MAQ)
This telecommunication and hosting services provider's shares may be trading close to a multi-year high, but I still think they are great value for a long-term investment. Especially given the strong financial performance and growth potential of its data centre business. In many respects, I see Macquarie Telecom as a cheaper alternative to industry peer and market darling Nextdc Ltd (ASX: NXT).
